A guide on obtaining general trading license in Dubai free zone
General trading licenses in Dubai free zones have become increasingly popular. This is because the trading industry is one of the most prominent industries in the country.
The UAE free zones are in close proximity to sea ports and airports, making it one of the most ideal locations to trade internationally. Over the years, the country has been progressing considerably which has also increased opportunities for entrepreneurs. This is the reason why many entrepreneurs from around the world want to start a business in the UAE.
Continue reading to learn more about general trading license in Dubai free zone.
General trading license 101
Acquiring a general trading license in the UAE would mean that a company is legally authorized to sell, distribute, store, import, export and re-export goods under one license.
General trading license covers an array of activities, these include any type of goods such as foodstuff, furniture, electronics, etc. Although almost any kind of goods can be traded, there are certain products that are not permitted to be traded or require special permission from various Municipalities. These products include medical drugs, weaponry, and alcohol, to name a few.
There is one main difference between a general trading license and a regular trading license. When it comes to general trading license, you’re free to trade in multiple goods under one license. This includes trading unrelated goods. On the contrary, with a regular trading license, you can only trade a single type of commodity under the license.
The difference between general trading in free zones and mainland is that you will need to pay an additional charge of AED 15,000 excluding license cost for general trading on mainland. On the other hand, there are no additional charges for general trading in free zones. Moreover, you also do not require to have a warehouse in free zones and can proceed with just a virtual office.
One of the main reasons why general trading license is highly sought after is because of the UAE’s tax advantages. The country also enables import and export of goods without any customs tax. In addition, setting up a business in the UAE free zone is considerably easier.
General trading license cost in Dubai starts from AED 11,900. However, the price may vary depending upon the free zone you opt for. In addition, you can register free zone companies within 3-4 days. Moreover, free zone authorities require minimum paperwork to set up a company.
What is the process of obtaining a free zone general trading license?
In order to obtain a general trading license, the following are the steps:
Choose your preferred jurisdiction
There are many free zones in the UAE amongst which you can select the most suitable one for you. One of the most popular choices for investors is International Free Zone Authority (IFZA).
Decide the ideal company structure
In order to process, you must select one of the following company structures that is most suitable for you.
- Free Zone Establishment (FZE)
- Free Zone Company (FZCO)
- Branch Company
Apply for business registration
Submit of all required documents
The following documents need to be submitted to the relevant authorities:
- Completed application form
- Passport copy of the owner/owners
- Visa copy
- Emirates ID copy (if applicable)
- Two coloured passport sized photographs with white background
There may be a requirement to submit additional documents depending upon the selected free zone.
Pay license fee
Once you have paid the fee and the process has been completed, you will obtain your license.
Obtain your general trading license with Shuraa
Shuraa ensures that the entire process of obtaining your general trading license in the UAE free zone runs smoothly. Our expert consultants will guide you through the entire process from regulatory requirements, understanding general trading license cost in the UAE, all the way up to the process of obtaining approvals from the authorities.
If you would like to set up a general trading company in Dubai, contact Shuraa Business Setup today. To get in touch with our expert business consultants, call us on +97144081900. Send a WhatsApp message for a chat query on +971507775554. You can also email us at [email protected]